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4 Promising Stocks to Add as September Retail Sales Rise
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Despite the challenges posed by a higher interest rate environment, U.S. retail sales maintained a positive trajectory in September. Consumer spending, a pivotal force propelling the economy, remained robust as Americans increased their expenditures on motor vehicles, restaurants and bars.
The buoyancy in consumer spending is underpinned by a robust labor market and wage increases. As fears of a looming recession dissipate, consumer confidence is making a comeback. In September, the economy generated an impressive 336,000 jobs, reinforcing the momentum behind this upward trend in consumer spending.
September marked the sixth consecutive month of gains in retail sales. While there was a spike in retail spending on fuel, growth in expenditures on other items remained relatively decent.
A Peek Into Retail Sales Numbers
The Commerce Department reported a sequential increase of 0.7% in U.S. retail and food services sales for September, reaching a total of $704.9 billion. This followed a revised reading of a 0.8% increase registered in August. Impressively, September retail sales rose 3.8% from the year-ago period.
The Commerce Department's latest report reveals a diverse range of trends in retail sales. Motor vehicle & parts dealers saw an increase of 1% in sales on a sequential basis. Both food & beverage stores and general merchandise stores posted growth of 0.4%.
Gasoline stations witnessed a rise of 0.9% in receipts. Sales at health & personal care stores rose 0.8%, while food services & drinking places saw a 0.9% increase. Miscellaneous stores witnessed a rise of 3% in sales. Non-store retailers reported a sales increase of 1.1%.
However, the picture was less optimistic for building material & supplies dealers, where sales declined 0.2%. Electronics & appliance stores reported a drop of 0.8%. Clothing & clothing accessories outlets also saw a decline of 0.8%.
Interestingly, sporting goods, hobbies, musical instruments & bookstores and furniture & home furnishing stores reported unchanged sales last month.
Past-Year Price Performance
Image Source: Zacks Investment Research
4 Prominent Picks
Urban Outfitters (URBN - Free Report) is worth betting on. This leading lifestyle product and services company seems a promising bet due to its solid business strategies and sound fundamentals. Management has been strengthening its direct-to-consumer business, enhancing productivity across existing channels and optimizing inventory levels. URBN’s strategic growth initiative, FP Movement and store-growth endeavors are also impressive.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal sales and EPS suggests growth of 6.6% and 83.4%, respectively, from the year-ago reported figure. URBN has a trailing four-quarter earnings surprise of 19.2%, on average. This Zacks Rank #1 (Strong Buy) company has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Walmart (WMT - Free Report) is another potential pick. The omnichannel retail giant has been diligently working to further strengthen its already formidable presence in the market. The company has embarked on a series of strategic e-commerce initiatives, encompassing acquisitions, partnerships and significant improvements in its delivery and payment systems. Simultaneously, Walmart is committed to elevating its merchandise offerings, ensuring a diverse and appealing product assortment.
This Zacks Rank #2 (Buy) stock has a trailing four-quarter earnings surprise of 11.6%, on average. The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings suggests growth of 5% and 2.2%, respectively, from the year-ago reported numbers. The company has a VGM Score of A.
Investors can count on Ross Stores (ROST - Free Report) . The store expansion strategy, combined with the company's strong brand reputation and off-price retail model, positions Ross Stores for success in the dynamic retail landscape. The company has ambitious goals, aiming to reach at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS locations over time. By expanding its store network, the company strengthens brand visibility, captures new customer segments and unlocks potential sales growth.
This operator of off-price retail apparel and home fashion stores delivered a trailing four-quarter earnings surprise of 11.4%, on average. The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and EPS suggests growth of 7.1% and 19.4%, respectively, from the year-ago period. ROST, which presently carries a Zacks Rank #2, has a VGM Score of B.
The TJX Companies (TJX - Free Report) is also worth betting on. This Framingham, MA-based company’s flexible off-price business model, store expansion strategies, strong vendor relationship and availability of branded merchandise provide tremendous opportunities to drive sales and traffic. TJX's expansion initiatives and focus on technological integration, including data analytics and e-commerce advancements, underscore its adaptability to evolving market trends.
The Zacks Consensus Estimate for TJX Companies’ current fiscal sales and EPS suggests growth of 7.5% and 19.3%, respectively, from the year-ago reported figure. This Zacks Rank #2 stock has a trailing four-quarter earnings surprise of 6.6%, on average. The company has a VGM Score of B.
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4 Promising Stocks to Add as September Retail Sales Rise
Despite the challenges posed by a higher interest rate environment, U.S. retail sales maintained a positive trajectory in September. Consumer spending, a pivotal force propelling the economy, remained robust as Americans increased their expenditures on motor vehicles, restaurants and bars.
The buoyancy in consumer spending is underpinned by a robust labor market and wage increases. As fears of a looming recession dissipate, consumer confidence is making a comeback. In September, the economy generated an impressive 336,000 jobs, reinforcing the momentum behind this upward trend in consumer spending.
September marked the sixth consecutive month of gains in retail sales. While there was a spike in retail spending on fuel, growth in expenditures on other items remained relatively decent.
A Peek Into Retail Sales Numbers
The Commerce Department reported a sequential increase of 0.7% in U.S. retail and food services sales for September, reaching a total of $704.9 billion. This followed a revised reading of a 0.8% increase registered in August. Impressively, September retail sales rose 3.8% from the year-ago period.
The Commerce Department's latest report reveals a diverse range of trends in retail sales. Motor vehicle & parts dealers saw an increase of 1% in sales on a sequential basis. Both food & beverage stores and general merchandise stores posted growth of 0.4%.
Gasoline stations witnessed a rise of 0.9% in receipts. Sales at health & personal care stores rose 0.8%, while food services & drinking places saw a 0.9% increase. Miscellaneous stores witnessed a rise of 3% in sales. Non-store retailers reported a sales increase of 1.1%.
However, the picture was less optimistic for building material & supplies dealers, where sales declined 0.2%. Electronics & appliance stores reported a drop of 0.8%. Clothing & clothing accessories outlets also saw a decline of 0.8%.
Interestingly, sporting goods, hobbies, musical instruments & bookstores and furniture & home furnishing stores reported unchanged sales last month.
Past-Year Price Performance
Image Source: Zacks Investment Research
4 Prominent Picks
Urban Outfitters (URBN - Free Report) is worth betting on. This leading lifestyle product and services company seems a promising bet due to its solid business strategies and sound fundamentals. Management has been strengthening its direct-to-consumer business, enhancing productivity across existing channels and optimizing inventory levels. URBN’s strategic growth initiative, FP Movement and store-growth endeavors are also impressive.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal sales and EPS suggests growth of 6.6% and 83.4%, respectively, from the year-ago reported figure. URBN has a trailing four-quarter earnings surprise of 19.2%, on average. This Zacks Rank #1 (Strong Buy) company has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Walmart (WMT - Free Report) is another potential pick. The omnichannel retail giant has been diligently working to further strengthen its already formidable presence in the market. The company has embarked on a series of strategic e-commerce initiatives, encompassing acquisitions, partnerships and significant improvements in its delivery and payment systems. Simultaneously, Walmart is committed to elevating its merchandise offerings, ensuring a diverse and appealing product assortment.
This Zacks Rank #2 (Buy) stock has a trailing four-quarter earnings surprise of 11.6%, on average. The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings suggests growth of 5% and 2.2%, respectively, from the year-ago reported numbers. The company has a VGM Score of A.
Investors can count on Ross Stores (ROST - Free Report) . The store expansion strategy, combined with the company's strong brand reputation and off-price retail model, positions Ross Stores for success in the dynamic retail landscape. The company has ambitious goals, aiming to reach at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS locations over time. By expanding its store network, the company strengthens brand visibility, captures new customer segments and unlocks potential sales growth.
This operator of off-price retail apparel and home fashion stores delivered a trailing four-quarter earnings surprise of 11.4%, on average. The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and EPS suggests growth of 7.1% and 19.4%, respectively, from the year-ago period. ROST, which presently carries a Zacks Rank #2, has a VGM Score of B.
The TJX Companies (TJX - Free Report) is also worth betting on. This Framingham, MA-based company’s flexible off-price business model, store expansion strategies, strong vendor relationship and availability of branded merchandise provide tremendous opportunities to drive sales and traffic. TJX's expansion initiatives and focus on technological integration, including data analytics and e-commerce advancements, underscore its adaptability to evolving market trends.
The Zacks Consensus Estimate for TJX Companies’ current fiscal sales and EPS suggests growth of 7.5% and 19.3%, respectively, from the year-ago reported figure. This Zacks Rank #2 stock has a trailing four-quarter earnings surprise of 6.6%, on average. The company has a VGM Score of B.